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3/26/2012 5:23PM

Natural Gas Fuels Boom in Steel Demand

U.S. Steel's stock is up 25% this month, fueled by the natural gas boom, which is cutting energy costs dramatically, while also driving demand up for drilling pipe and steel intensive equipment. John Miller has details on The News Hub. Photo: AP

This transcript has been automatically generated and may not be 100% accurate.

... the the ... the U S Steel to the ... problem last year ... it ... costs ... it also was the width of red or black males ... in the guest is really start missing cannot stop the new steel ... a lot in two ways one is the ship was due diligence ... is the steel pipes ... are up our way up the second is it managed to ... use ... at the lower electricity bills ... in their steel mills ... but to cut their costs and a big way ... subjects eighty million dollars in savings this year ... and lower gas bills based the energy costs ... and the awesome replacing coking coal when angry it's in the steelmaking process ... with Jesse's new technology ... that spun off set very high price for iron ore right now which is ... Avici steals the remaining three ... some twenty ninth of August op shop now it's a sensible Expo in US tail ... and hopefully we can we talk that don't ... meet up twenty five percent of a fall last month which is quite ... a move ... aam we've we've got some more one of things to go now that you're still as old commodity ... company says is that it's a very cyclical business so you can see these major ... major moves now ... um shown prime if I'm wrong the line all priced wine now the low right now but it could be could fall at quite quickly if we see China gonna slow down right because that one of the main ... why is all final ... that's right and the talk BHP Billiton ... last week one of the world's biggest miners by a buyer or ... when they say is actually cause the will to tumble in the steel market last week of Micra tumble ... when he said that he thought China ... I would grow at only six or seven percent instead of seven or eight percent ... and it is that sensitive ... of BHP and the last week when are still fairly confident that ... China will maintain ... its case ... I will keep on buying ... iron ore from Australia and people making ... a similar plot to steal ... and projected that ... and the billion pounds this deal ... within five years now that the US and US Steel panel on him how much can use all ... of its production with natural gas or do they still have to rely sidewalk on coal related products like cars ... right so I ate ... no cooking color names like ingredient ... I add ... that the projections by UBS last week show that ... you still can save a hundred and thirty three million dollars ... this year the by replacing some cooking call with natural gas ... I it was also the guest room by delays and having ... integrated steel makers like it's the off ... and are slim it's all over ... it somewhat MITI nails which meltdown scraps to make steel ... plate Nucor ... um ... and so you get until Saturday night ... it costs about ten dollars a tonne to make ... tuxedos in making steel ... and by replacing some ... coal natural gas ... acreage cut costs by ... ten dollars per ton steel ... fence not to say I the the the gas that has been great for the steel business but how how long can last May when it down a bit in your in your story you he did say that natural gas prices have fallen so glad that some energy companies are ... a good investment ... there is the concern ... however ... I was talking to um ... senior analyst Bob kiss in front of IHS this morning ... you say that I get to be compensated by ... conduit for oil ... which is ... the city were increasing ... and ... it is ghastly here is so strong and ... are seeing a lot of ... the country chemical companies ... were giving back the next face the convention with ... lower gas prices ... and so strong that the long run ... there isn't a certain structural concerned that ... people don't stop doing that to my mites so delicate during what's ... in supply ... and since derisk death from currently ... but in the long term seems to be ... a pretty stable ... that ...